Themes

Executive Summary

The post liberalization era has opened up a plethora of opportunities
for the Indian leather industry.

With global players looking for new
sourcing options (in addition to China, India stands to gain a bigger
share of the global market.Leading brands from the US and Europe are
planning to source leather and leather products from India.

Global
players who participated at the India International Leather Fair, 2005,
consider India as the market to be in. The 2006 fair is being designed
to focus on the opportunities for sourcing from India.

This report looks at the leather industry from both the macro and micro
perspectives. At the macro level it deals with international competitiveness of the industry, environmental and regulatory issues like PCP (Pentachlorophenol concentration and concerns on animal rights
violations, employment creation, and trade-related details. It also
provides information on the micro structure of the Indian leather
industry, the major players and foreign collaborations.

India has a less than 3% share in the global trade in leather compared
to China's 20%. Realizing the growth potential of the leather industry,
the Government of India has been making significant efforts to promote
rapid advancement of the industry. On June 30, 2005, the Cabinet
Committee on Economic Affairs (CCEA) decided to implement a Rs 2.9
billion scheme for the integrated development of the leather sector.
Under this scheme, existing tanneries will be modernized and new units
will be set up for footwear, components and leather products. This
scheme is expected to result in gains in terms of productivity,
right-sizing of capacity, cost-cutting, and design-development.